American Grocers, Inc. To Pay $13.2 Million Over Claims It Shipped Expired Food To Troops

November 22, 2010

A qui tam whistleblower suit has resulted in a $13.2 million settlement in a case against American Grocers, Inc., a company with contracts to supply food to U.S. troops in the Middle East. Debbie Pallares, a former employee of the company, filed suit in 2005, alleging that the American Grocers and its owner, Samir Itani, submitted false claims to the United States by supplying expired and near-expired items under the contracts. The complaint alleged a number of fraudulent tactics utilized by Itani, including eradification and forgery of expiration dates and falsification of health inspection certifications.

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